The Weiss Approach: Finding Value in Dividend-Paying Blue Chips
by John Bajkowski
A bird in the hand is worth two in the bush.
Its an old saying, but its a sentiment felt by many conservative stock investors who prefer the stocks of stable and established companies that provide part of their return sooner, in the form of dividends, rather than later, in the form of capital gains. The recent change in the tax code reducing the taxable impact of common stock dividends for individual investors has boosted the desirability of dividend income, and many companies have responded with higher dividend payouts.
How does one choose among these kinds of stocks? One approach is followed by Geraldine Weiss, editor of the highly regarded Investment Quality Trends, a La Jolla, California-based newsletter that tracks and recommends stocks based on her approach.
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